Silverhazesurfer: I am using Word 2007 so somehow that issue still seems to be around. Your posting that included the MS link was actually very helpful. I removed the automatic numbering on my original letter and then manually added the numbers. When I did the mail merge, all of the numbering was correct.
I am a happy camper. Thank you very much!
See below what helped me from the MS site that you posted: I used Method 2:
Method 2: Manually Number List
To manually number the list in the main document of your catalog mail merge, clear the Automatic numbered lists check box. To do this, follow these steps:
On the Tools menu, click AutoCorrect.
On the AutoFormat As You Type tab, click to clear the Automatic numbered lists check box.
Click OK to close the AutoCorrect dialog box.
NOTE: If the main document of your catalog mail merge already contains an automatically numbered list, select the list and press CTRL+Q. This removes the automatic numbering. Then, manually number each list before you continue with your catalog mail merge.